Market-leading easy-access savings account launched by Post Office

25 June 2018

Savers can get their hands on a new easy-access best buy rate of 1.33% with Post Office Money’s Online Saver.

The account is Moneywise’s new easy-access best buy, and can be opened online with just £1. 

However, the headline rate of 1.33% includes a 1.08% bonus rate. This means that after 12 months the rate drops to a miserly 0.25% - so ensure you diarise to move your money when this happens.

How does it compare?

The next best easy access accounts come from Coventry Building Society, RCI Bank, and Sainsbury’s Bank, which all pay 1.3%.

Coventry’s product also includes an introductory bonus of 0.3%, which means the rate will drop to 1% after 12 months. However, this account is a limited access saver meaning you can only make three no-notice withdrawals per year.

Similarly, Sainsbury’s Bank's account is a defined access saver with a maximum of three withdrawals. In both cases if you withdraw more than this in the first year you’ll lose the headline interest rate.

The RCI Bank Freedom Savings Account suffers no such restrictions. It can be opened online with an initial deposit of £100. The difference with this account is that it is French-based, meaning in the even the provider went bust, your money would be protected by the French deposit protection scheme rather than the UK’s Financial Services Compensation Scheme (FSCS).  

The Moneywise verdict

Post Office Money’s new account comes with a table-topping rate but new savers should be careful as it drops significantly after the first year.

While the RCI Bank’s offering is marginally lower by 0.03%, its rate includes no such bonus. However, it’s still a variable account meaning rates can change at any time.   

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